Alt5 Sigma's Auditor Crisis Deepens: Three Firms in Six Weeks as Nasdaq Delisting Looms

Alt5 Sigma faces a critical juncture as the company grapples with mounting compliance issues, including a revolving door of auditing firms and delayed financial filings. The Las Vegas-based fintech company, which pivoted to focus on digital asset portfolios through a major corporate restructuring, is now confronting potential Nasdaq delisting after failing to submit quarterly financial reports on schedule.

The Auditor Shuffle: A Pattern of Instability

The company’s audit turmoil exemplifies deeper operational dysfunction. In just six weeks, Alt5 Sigma cycled through three separate auditing firms, signaling broader governance concerns. The latest disruption came when the firm discovered that Victor Mokuolu CPA PLLC—hired earlier this month and selected to handle critical financial attestations—operated without valid credentials. The Texas-based auditing firm’s license had expired in August, rendering the company technically ineligible to conduct public company audits.

Upon discovering the licensing lapse, Alt5 Sigma terminated Victor Mokuolu CPA PLLC on December 25 and subsequently engaged LJ Soldinger Associates as its third auditor within six weeks. This pattern of instability raises questions about due diligence processes within the company’s governance structure.

The dismissed firm carries its own regulatory baggage. Victor Mokuolu CPA PLLC faced multiple enforcement actions for compliance failures. The Public Company Accounting Oversight Board (PCAOB) imposed a $30,000 penalty in 2023 for failing to notify regulators of completed audits for six public companies within the required 35-day window. Texas state regulators levied an additional $15,000 fine in 2024 for similar violations. The firm also received a failing grade in its 2023 peer review and has struggled to remediate identified deficiencies for more than two years.

Executive Exodus and Board Upheaval

Compounding audit problems, Alt5 Sigma experienced significant leadership turbulence. Chief Financial Officer Jonathan Hugh, who arrived as part of a major August corporate transaction, departed after just three months. Chief Executive Officer Peter Tassiopoulos exited in October, followed by board member David Danziger’s resignation last month. These departures left the company without sufficient board expertise in accounting and audit oversight, violating Nasdaq’s governance standards.

The Digital Asset Gamble and Its Consequences

Alt5 Sigma’s current predicament traces back to its August pivot into cryptocurrency holdings. The company committed to purchasing and maintaining a substantial position in WLFI tokens through a partnership with World Liberty Financial. As of early December, Alt5 Sigma held approximately 7.3 billion WLFI tokens valued near $1.1 billion, representing a concentrated and volatile asset exposure.

This strategic shift created immediate compliance headaches. The company failed to deliver timely quarterly financial reports for the period ending in September—a disclosure requirement mandated by Nasdaq. Management attributed delays partly to responsiveness issues with the previous auditing firm, which formally resigned in November.

Regulatory Shadows and International Complications

Further clouding Alt5 Sigma’s profile, the company disclosed in August findings from a Rwandan court proceeding. A Canadian subsidiary and its former head, David Beauchesne, were found guilty of charges including illegal enrichment and money laundering in May. Both Beauchesne and the subsidiary filed appeals with the Kigali High Court in June and maintain their innocence, characterizing themselves as fraud victims.

The Delisting Countdown Begins

Alt5 Sigma now races against time to address Nasdaq’s compliance concerns. The company’s failure to submit required financial documentation, combined with audit committee deficiencies and unresolved leadership gaps, has triggered formal delisting proceedings. Resolution requires the company to secure a credible auditor, file overdue reports, and stabilize its management team—all while managing exposure to a highly volatile cryptocurrency asset with a market capitalization dependent on speculative sentiment.

The convergence of these factors—auditor instability, executive departures, delayed filings, and regulatory complications involving subsidiary operations—creates a convergence of risks that could result in delisting from one of the nation’s premier exchanges.